Cooperation on CO2 to save money

According to Sophie Punte, the Executive Director of the Smart Freight Centre, “if all partners contribute we can realize double digit CO2 reductions. Carriers and cargo owners can both take decisions that matter.Reducing emissions can, first of all, save cargo owners and carriers money and help improve their competitiveness. Secondly, sustainability efforts respond to growing concerns of modern and critical consumers. Thirdly, by acting as leaders, companies can earn a seat at the table with governments to influence policy proactively and constructively”.

SFC is a global non-profit organization for more efficient and sustainable freight and logistics worldwide. SFC set up the Global Logistics Emissions Council (GLEC) as a partnership of companies, associations, and industry programs, that together develop the GLEC framework – a method to calculate CO2 emissions across the global, multi-modal logistics supply chain. As right now there exist different emission calculation methodologies, it is difficult for cargo owners and carriers to take the right decision considering carbon footprint. The GLEC Framework combines existing methodologies and fills the gaps so that you get one approach for all freight modes and connections between them.

A wide group of stakeholders is involved in its development, thus, there will be more support in the application too. ‘The calculation methodology must then be applied to the full supply chai’, argues Punte. ‘From the very start of the chain right to the final customer emission values should be determined’.

The Logistics Emission Accounting and Reduction Network (LEARN) project, where ESC and SFC are partners, is financed by the European Commission. The GLEC Framework in the framework of LEARN is being tested by companies with complex logistics chains.

‘The question is why the European Commission supports the LEARN project,’ says Punte. ‘In my view, this is to give companies first the chance to test themselves how to calculate emissions and link results to decisions that reduce logistics emissions. The key lies in companies showing leadership and taking reduction initiatives’.

‘Ultimately, it is inevitable that governments will introduce laws that require greater emissions disclosure. The aim of LEARN is therefore to determine what works. Companies can then show to governments: look this works, so support this methodology. At least if legislation is introduced, then it is based on practical experience.’